by: Denise O'Berry
There was a buzz in the air recently about the US Postal Service. Seems as though they were running into a budget deficit in the billions.
The Postal Service claimed they must cut Saturday service to customers to stay afloat a service they had provided for years. And one that customers expected. They said people using email instead of regular mail made a major dent in their profits. Customers were in an uproar. If customers had a choice, they'd lose many. Welcome to the real world of business.
There are three lessons in this for your business.
Lesson #1: Use indicators, in addition to cash flow, that help you watch the ebb and flow of your business. What can you measure that will tell you quickly so you can act about what's happening in your business?
Lesson #2: Don't just whack a service you've been providing your customers. If you need to cut, look inside your business for processes and procedures that can be streamlined to save you money. Cut the fat of your business, not the services.
Lesson #3: Always be on the lookout for new competitors entering your business space. Don't wait for that competition to start taking away your customers. Be proactive. Find ways to offer more value to keep your customers loyal.